invoice, cost of goods sold, process payment question

[John Griessen]

Thanks,

Very helpful.  I was thinking of 2. Post all your materials purchases directly 
to COGS. as a way to get my simple case handled, and finesse it later...

John G

David Harrison wrote:

> If I understand correctly, you want the underlying journal entries to
> look something like this:
> 
> Asset: Accounts receivable         x,xxx.xx
> Expense: COGS                           xxx.xx
>      Income:Revenue                                     x,xxx.xx
>      Asset: Inventory                                        xxx.xx
> 
> As far as I know, you cannot do this from the invoice screen.
> 
> Here are a couple of options:
> 
> 1. Make a seperate entry to transfer the cost from inventory to COGS
> (seperate from the invoice).
> 

This sounds like a way to deal with a COGS tally, but both ways
leave inventory and sales unconnected, and now I hear from Derek:
" I'll repeat again: Gnucash Does Not Support
Inventory.",  and I'm now clear on the concept, thanks.

John Griessen


> 2. Post all your materials purchases directly to COGS.   
if your inventory is higher at the end of the
> period than it was at the end of the last period, debit inventory and
> credit COGS. 
And thank you Amdrew:  "manually enter a COGS expense after you've entered the 
invoice, "

I may try a combination of 1. and 2. as I get it straight.
Thanks,

John G